Moody's affirms Verso

Moody's Investors Service said it affirmed the B2 corporate family and probability of default ratings for Verso Paper Finance Holdings LLC and lowered its speculative-grade liquidity rating to SGL-3 from SGL-2.

The revised liquidity rating stems principally from the near-term (August 2012) expiry of Verso's revolving credit facility, Moody's said.

The company's instrument ratings also were affirmed.

The ratings primarily reflect the company's vertically integrated, relatively low-cost asset base and its scale as the second largest producer of coated papers in North America, Moody's said.

The ratings also consider the company's significant debt load, its narrow product focus and an expectation that the company will continue to face secular demand declines for its primary products, the agency said.

The outlook is stable, reflecting expectations that the company will be able to refinance its debt obligations on a timely basis and that industry fundamentals will allow the company to maintain credit protection measures appropriate for its current rating, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.